Stout was engaged by an automotive parts manufacturer to assess the risk of elevated warranty and recall activity associated with certain advanced automotive equipment. Stout performed a comprehensive study of the frequency and severity of instances of automotive component defect and failure related to the subject component. We used publicly available and proprietary data sets to research and analyze the incidence of defects related to the subject component and to develop a population of comparable components for further analysis. Stout also determined the probability-weighted cost of a potential recall or field service action related to the subject component and assisted the client with an assessment of potential risk-mitigation opportunities.

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